MedPlus Health Service Limted IPO(Medplus IPO)

Medplus Health IPO
Upcoming MedPlus IPO | New MedPlus IPO

Medplus Health Service Limited Company was founded in 2006 by Gangadi Madhukar Reddy, their Managing Director and Chief Executive Officer, with the vision to set up a trusted pharmacy retail brand that offers genuine medicines and delivers better value to the customer by reducing inefficiencies in the supply chain using technology.

Medplus Health are the second-largest pharmacy retailer in India, in terms of (i) revenue from operations for the financial year 2021, and (ii) the number of stores as of March 31, 2021, according to the Technopak Report. They offer a wide range of products, including (i) pharmaceutical and wellness products, including medicines, vitamins, medical devices, and test kits, and (ii) fast-moving consumer goods, such as home and personal care products, including toiletries, baby care products, soaps and detergents, and sanitizers.

Medplus Health have maintained a strong focus on scaling up their store network, having grown from operating their initial 48 stores in Hyderabad at the conception of their business to operating India’s second-largest pharmacy retail network of over 2,000 stores distributed across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal, and Maharashtra, as of March 31, 2021, according to the Technopak Report.

Their number of stores has grown since the conception of their business and, as of June 30, 2021, they operated 520 stores in Karnataka, 458 stores in Tamil Nadu, 443 stores in Telangana, 274 stores in Andhra Pradesh, 201 stores in West Bengal, 186 stores in Maharashtra and 83 stores in Odisha.

Medplus Health have continued to expand their store footprint in key cities where they operate and, between March 31, 2010, and June 30, 2021, their number of stores in Chennai grew over four-fold from 62 to 293 stores, their number of stores in Bangalore grew three-fold from 110 to 331 stores, their number of stores in Hyderabad grew over two-fold from 141 to 309 stores, and their number of stores in Kolkata grew over eight-fold from 22 to 201 stores. In terms of the number of stores as of March 31, 2021, they ranked 1st in Chennai and Bangalore, and 2nd in Hyderabad and Kolkata, according to the Technopak report.

MedPlus IPO

Medplus Health IPO Business Strategy

  • Strengthen Their Market Position by Increasing Store Penetration in Existing Clusters and Developing New Clusters
  • Further, Develop Their Omni-channel Platform with a Hyperlocal Delivery Model
  • Increase Their Share of Private Labels and Enhance Their Stock Keeping Unit (“SKU”) Mix
  • Enhance Revenue and Increase Customer Wallet Share Through Continued Investment in Technology Infrastructure and Expansion into Adjacent Healthcare Vertical
  • Continue to Increase Operating Efficiency and Enhance Supply Chain Management to Drive Profitability

Competitive Strengths

  • India’s Second Largest Pharmacy Retailer;
  • Established Brand and Value Proposition to Customers;
  • Successful Track Record of Expansion Using a Distinct Cluster-based and Replicable Store Unit Expansion Approach;
  • High-Density Store Network Enhancing Omni-channel Proposition;
  • Lean Cost Structure and Technology-Driven Operations; and
  • Well Qualified, Experienced and Entrepreneurial Board and Senior Management Team

Company Promoters

  1. Gangadi MadhukaR Reddy,
  2. Lone Furrow Investments Private Limited
  3. Agilemed Investments Private Limited

Company Financials

ParticularsFor the year/period ended (₹ in Millions)
31-Mar-2131-Mar-2031-Mar-19
Total Assets1565.661348.70958.71
Total Revenue3090.812887.892284.94
Profit After Tax63.111.7911.92

Object Of The Issue

  1. Funding working capital requirements of their Material Subsidiary
  2. General corporate purposes.
MedPlus IPO
Object Issue

MedPlus IPO Risk

  • The impact of COVID-19 on their business in the future is unknown and cannot be forecast.
  • Changes in prescription medicine price and commercial terms may have a negative impact on their business.
  • Their company, subsidiaries, promoters, and directors are all involved in ongoing legal procedures. Any negative decision in any of these processes might have a negative impact on their company.
  • Privacy and security rules govern their use and sharing of personally sensitive information, especially personal health information.
  • Their financial success may be harmed if we do not effectively manage inventory and forecast demand.
  • They may be vulnerable to cyber-attacks and information technology system failures.

Other Threats

  • They are exposed to the dangers that come with expanding into new markets.
  • Employee misbehaviour or errors that are difficult to discover might cause them harm, and any such incidents could have a negative impact on their business.
  • Negative news or other occurrences involving the Indian pharmaceutical sector may have a negative impact on their business.
  • They rely on the use of prescription medications, and their brand name or generic drugs may have a detrimental effect on their sales and margins, causing them to lose money.
  • They have engaged in related party transactions in the past and may do so again in the future.
  • Under their financial agreements, their lenders have put some restrictive limitations on them.

MedPlus IPO – Details

IPO Opening Date13 December 2021
IPO Closing Date15 December 2021
Issue TypeBook Built Issue IPO
Issue Size₹ 1398.3 Crore
Face Value₹2 per equity share
IPO Price₹780 To ₹796 Per Equity Share
Market Lot18 Shares (1 Lot)
Min Order18 Shares
Listing AtBSE, NSE
RegisterK Fintech Private Limited
QIB Shares Offered50% of the net offer
Retail Shares Offered35% of the net offer
NII (HNI) Shares Offered15% of the net offer

MedPlus IPO – Date Schedule

IPO Open Date13 December 2021
IPO Close Date15 December 2021
Basis of Allotment Date20 December 2021
Initiation of Refunds21 December 2021
Credit of Shares to Demat Account22 December 2021
IPO Listing Date23 December 2021

MedPlus IPO – Lots Size & Price

ApplicationLotsSharesAmount ( Cut-Off)
Minimum11814,328
Maximum132341,86,264

Promoter Holding

Pre Issue Share Holding43.16%
Post Issue Share Holding40.43%

MedPlus IPO Prospectus

Company Contact Information

MedPlus Health Services Limited

707, 7th Floor, 5-9-13, Taramandal Commercial Complex,
Saifabad, Hyderabad 500 004, Telangana, India

Phone: +91 040 6724 6724
Email: cs@medplusindia.com
Websitehttps://www.medplusindia.com/

MedPlus IPO Registrar

KFin Technologies Private Limited

Selenium, Tower B, Plot No- 31 and 32
Financial District, Nanakramguda,
Serilingampally, Hyderabad
Rangareedi 500 032
Telangana, India

Tel: +91 40 6716 2222/ 180034 54001
E-mail: medplus.ipo@kfintech.com
Website: www.kfintech.com

MedPlus IPO Lead Manager(s)

1. Credit Suisse Securities (India) Private Limited
2. Axis Capital Limited
3. Edelweiss Financial Services Limited
4. Nomura Financial Advisory and Securities (India) Private Limited

MedPlus IPO FAQs

When MedPlus IPO IPO will open?

The MedPlus IPO IPO dates are 13 December 2021 To 15 December 2021.
What is the lot size of MedPlus IPO IPO?

MedPlus IPO IPO lot size is 18 Shares Shares and total amount is ₹ 14,328
How to apply for MedPlus IPO IPO?

You can apply in MedPlus IPO IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don’t offer banking services.
When is MedPlus IPO IPO listing date?

The MedPlus IPO IPO listing date is announced. The date of MedPlus IPO IPO listing is 23 December 2021.

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